Celsius Network, the “cryptocurrency bank” valued at US$3 billion, is again under scrutiny this week after rumors spread that its CFO Yaron Shalem had been arrested for fraud in Israel. The company has received funding and loans from Tether, issuer of the ubiquitous but troubled USDT “stablecoin.”

At the time of writing, Shalem’s arrest has not been confirmed in news reports. However, a number of Twitter accounts posted the claims separately, one saying Celsius was “about to blow.”

Celsius and Tether

Tether has provided a loan to Celsius Network and was the lead investor in a US$30 million funding round in 2020.

Each Tether (USDT) is designed to be worth approximately US$1, and the asset is used as a stand-in for USD on several of the world’s largest exchanges. Its value was purportedly derived from an equivalent “real” U.S. dollar held in…

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